Gaming VC to Focus on European Diversification
In his address to shareholders, Gaming VC (SEA:GVC) CEO Kenneth Alexander said that, in light of recent, arguably favorable developments regarding cross-border I-gaming in the EU, the company will focus on European diversification as its "key strategic objective." Alexander said the company was considering launching a sports book and is currently looking to secure Italian sports betting licensure. He added that GVC will shift its focus to online marketing and scale back its direct mail initiatives to its German-speaking market.
On April 17, the company released its preliminary full year results, which showed its performance offset by a one-off charge ($38.9 million) caused by the unclear German regulatory milieu. By contrast, its Q1 results, released the same day, showed a 95.7 percent increase in new registrations (37,401) compared to last year's figure (19,110). Revenue for the quarter totaled $15.8 million, up 11.4 percent against $14.2 million in 2005. "These Q1 results represent a solid performance for Gaming VC," said Alexander
Click here to view Gaming VC's preliminary full year and Q1 results.
Tough Times for PacNet
Asia-focused e-biz solutions provider PacificNet (NASDAQ:PACT) on April 17 reported a Q4 loss of $20 million, or $1.73 a share, on revenue of $10.4 million. During Q4 2005, the company generated $918,000, or $0.08 a share, on revenue of $13.4 million. PacNet said it was mulling the sale of its low-margin, China-focused telecom business units following restrictions on value-added services in the country. It also said it now planned to focus on the Asia-facing gaming market. PacNet shares were down six percent on the NASDAQ at $4.84 on news of the results.
Click here to view PacificNet's full year and Q1 results.
Gaming Focused
Reuters reported that U.K. investment group Premier Portfolio will, in an attempt to strengthen the performance of its European growth fund, move into "overlooked online gaming stocks." The £13 million ($26 million) growth fund has performed well since manager Rupert Morrell took control in 2005, but has only matched the average manager in the IMA Europe ex-U.K. sector over the past year, the news service said. Morrell said that I-gaming stocks have become undervalued as a result of the U.S. prohibition.
Options Granted
Las Vegas From Home.com (LVFHF.OB) on April 17 granted its new CFO, David Shore, 800,000 incentive share purchase options, exercisable at $0.24 per share, which expire on April 11, 2010. The company said that, of the options granted, 25 percent will vest immediately, and thereafter, 25 percent will vest every six months.
So Far, So Good
32Red (TTR.L) on April 18 said its first quarter trading has been in line with management expectations after the Cheltenham Festival proved successful for its online sportsbook, BetDirect. The company also launched its 32Red Bet Web site, which realizes the company's plans of offering integrated betting and gaming services for both the 32Red and BetDirect brands. In mid-March, 32Red reported a pretax loss of $7.1 million after an abnormally high number of winning favorites in U.K. horseracing markets coupled with unfavorable football results adversely affected gross win margins for BetDirect.
bwin Releases Q4, Full Year Results
bwin (BWIN.VI) on April 19 released its fourth quarter and full year results. The company reported an EBITDA loss of 7 million euros ($9.5 million) on the year, compared to a 15.09 million euro ($21.6 million) profit in 2005. Earnings before interest and taxes were also down, falling 587.5 million euros ($799.1 million), after a profit of 7.7 million euros ($10.4 million) the previous year. Following its exit from the U.S. market, bwin absorbed an impairment charge of 515.5 million euros ($700.5 million), which contributed to net losses of 539.6 million euros ($733.9 million) after a net profit of 6.38 million euros ($8.67 million) in 2005. "The company changed its strategic approach with effect from the beginning of Q4 2006 in reaction to the legislative developments in the United States, and in view of the resistance mounted by the monopolies in several European countries," it said. bwin also said it had initiated an efficiency enhancement program, the resultant savings of which should be reflected in its Q1 2007 figures.
Click here to view bwin's annual report (2006).
Growing Strong
Spread betting firm London Capital Group (SEA:LCG) on April 19 reported strong first-quarter trading due to volatile market conditions. The company said that it expected solid trading to continue but emphasized that a run of low volatility could bring it back in line with first-half expectations.